Feature Company

Interview with Anne Marie Dunphy, Executive Vice President/CFO identiMetrics, Inc.
September 2006

FB

Could you please provide our readers with a brief background of the company?

AMD

Yes -- identiMetrics is an identity management company. We're headquartered in Malvern, PA, just oustside of Philadelphia. Our proprietary software, identiFi™, is a biometric fingerscanning ID platform that provides a cost-effective and accurate replacement for swipe-card readers, barcode readers, and PIN pads, allowing any organization to rapidly integrate and easily deploy biometrics. identiMetrics is primarily focused on the unique needs of consumer markets including education, retail POS, healthcare and hospitality. Our initial target is the education market and we're making significant inroads -- especially cafeteria POS segments in the United States.

FB

Many of the large research organizations are saying that the Biometric Industry is now starting the long anticipated growth climb. How do you feel about that?

AMD

We've seen the market tip -- if you will -- somewhere about April of this year in the education market. We're seeing end-users asking their vendors for biometrics, so we're getting serious interest from resellers, application companies and VARs. I know we've all been saying this for a few years now, but finally, we believe biometrics is here!

FB

What are some of the biggest changes that you have seen in the industry over the past two years?

AMD

I can tell you, over the past year we have seen tremendous changes! We exhibited at a national food services conference for cafeteria and food service directors this past July and exhibited at the same conference a year earlier. A year ago, some people were interested in finding out more about biometrics. There was still significant trepidation about privacy issues. Several vendors had interest, but they still weren't feeling the pressure of needing to supply biometrics to their customers. This year, most people understood what biometrics are -- they were seeking us out. Thought-leaders in education have been talking about biometrics. And vendors are getting pressure from their customers to provide a biometric solution that works. We found that biometrics is really starting to take off -- at least in the education segment.

FB

What brought about those changes -- is it just a general awareness of companies and integrators about biometrics?

AMD

Biometrics are catching on for several reasons. 1) The After-math of 9/11 - There are very few technologies that undergo an overnight change, but that's precisely what happened to biometrics after September 11, 2001. The government sector and the concern about security have catapulted biometric interest and use. 2) The Proliferation of Identity Theft - Between 2005 and 2007, there will be about $2 trillion in financial fraud. People are beginning to understand that biometrics actually protects their privacy. 3) Technology Improvements -- Just like computers and plasma TVs, the early models were expensive and feature--poor. As a result of time, the biometric technology has improved and costs have come down. 4) Lower Cost of Ownership -- Administrators are continually seeking ways to save time and money. Today, price is no longer an obstacle in the buying decision with certain biometric technologies, such as fingerscan biometrics. Fingerscan biometrics can actually be priced competitively with barcode readers, swipecard readers and PIN pads from a total cost of ownership point-of-view. 5) Consumer Awareness - Recently, we have seen biometrics introduced and advertised in a variety of areas in the consumer marketplace. Laptop computers, grocery stores and automobiles, for example, are using a biometric fingerscanner to identify people. We find that the more familiar people are becoming with biometrics, the more they feel comfortable and like the convenience of just having a finger for identification. In fact, a growing number of Americans believe that fingerscanning is a more secure form of identity than passports, credit cards, photo IDs, birth certificates and signatures combined. And when biometrics are introduced on cell phones in the US in the next year and a half (they're already in Japan), we expect that the acceptance of biometrics will explode.

FB

identiMetrics has had much success with the capture and identification of small fingers -- i.e.-children. Can you tell us a bit more about this area?

AMD

Yes -- most companies really focus on adults because they are dealing with large government and financial services types of applications. We have a unique problem because we are focussed on the challenges of the education sector and this means understanding the requirements of small children. Small children are the ones who have the hardest time remembering cards and PINs (besides me, of course!). Kindergarten children have enough trouble with the concept of lining up, let alone remembering a nine-digit PIN, which some school districts have. We spent a lot of time developing and testing our little-finger solution. We worked very closely with BIO-key, which has a very, very robust algorithm. We were able to test our software and different scanners with tiny, hard-to-read fingers in a living lab situation, a pre-kindergarten through 8th grade school of 600 in Philadelphia. As a result, we have been able to successfully scan small children as young as four years old, as well as develop best practices for the school environment.

FB

That's fantastic! What verticals do you see as growth areas for your company?

AMD

Well, certainly education is an area in which we are becoming highly successful. We have a motto at identiMetrics -- "The Market Speaks". We're letting our channel partners guide us into other markets. One area is retail point of sale from the operations side. We were recently invited to participate as a roundtable leader at a retail summit in Munich, Germany. Retail leaders are looking at biometrics to help with employee fraud -- a real problem in that market. And we even have an installation in a water park. The kid's scan in when they enter the park and can even use their fingers to buy lunch! So there are a lot of very interesting consumer verticals where the convenience of not having a card or PIN is the driver.

FB

You mentioned that you attended the National Food Services Show. Are you finding that by exposing biometrics in areas like that you are starting to reach a broader base?

AMD

Yes! When we go to any kind of conference or trade show, we go for a two-pronged approach. Number one is educating the attendees -- identiMetrics is the ambassador of biometrics! Number two is educating and supporting the vendors. Application companies are very, very good at their specific applications, but biometrics is not their core competency. We have seen many companies try to employ biometrics and have failed for a variety of reasons -- so we can help them and be their biometric partner.

FB

In summary -- what is next for the company?

AMD

We have developed an API -- so application companies can easily integrate our biometric solution into their applications without the cost, risk or time-to-market of doing it themselves. We're almost ready to release our new patent-pending fingerscanner that will provide serial output and fast communication over Ethernet. This scanner is unique since most scanners use USB and require PC presence at the scanner location. We're penetrating the education space and are now moving forward into other consumer verticals. And we were very pleased to see our business model being hailed as a winner during your recent interview with Rob Allen from Frost & Sullivan. We're going to continue to execute our strategy. In biometrics right now, we think that the market isn't just speaking, it's screaming!

FB

Anne Marie, thank you very much for the update on your company and congratulations on your success.

AMD

You are most welcome, Peter.

back